of 22
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
1/22
Cisco Confidential 1NDA Presentation
2010 Cisco Systems, Inc. All rights reserved.Mobility BDM_0110
LTE World Summit:
How UserExperience andDifferentiated
Services will Drivethe Adoption of LTE
Jonathan A. MorganMay 19, 2010
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
2/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 2NDA Presentation
More
Broadband
New Pricing
New Devices
NewApplications
Mobile Internet is Changing Everything
Video will be 66% of Mobile Traffic by 2013
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
3/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 3NDA Presentation
Visual Networking Devices
Driving Mobile Data Growth 2010 Mobile Device Comparisons
=
=
=
Smartphone
Laptop
E-reader
DigitalPhoto
Frame
VideoCamera
Mobile
PhoneProjector
10 X (monthly basic mobile phone data traffic)
2 X (monthly basic mobile phone data traffic)
= 10 X (monthly basic mobile phone data traffic)
= 100 X (monthly basic mobile phone data traffic)
= 300 X (monthly basic mobile phone data traffic)
1,300 X (monthly basic mobile phone data traffic)
Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
4/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 4NDA Presentation
The average mobile broadband-connectedlaptop will generate 7 GB of mobile data trafficper month by 2014 (versus 1.3 GB today).
Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco VNI Mobile Data Forecast_2010 4
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
5/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 5NDA Presentation
Today, smartphones are only 10% of allhandsets in use, but generate over 50% ofglobal mobile data handset traffic.
Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco VNI Mobile Data Forecast_2010 5
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
6/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 6NDA Presentation
Global Mobile Data Traffic Growth / Content
Mobile video will be 66% of mobile data traffic by 2014
66%66%
8%8%
4%4%
108% CAGR 20092014
Source: Cisco Visual Networking Index (VNI) Global Mobile Data Forecast, 20092014
5%5%
17%17%
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
7/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 7NDA Presentation
Evolving Market Landscape
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialPresentation_ID 7
Traffic
Revenues
MobileOperators
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
8/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 8NDA Presentation
Service Provider Challenge:
Making Profit
Profitability =Profitability = CapEx + OpExCapEx + OpExRevenueRevenueManage the bandwidthManage the bandwidth
explosion from videoexplosion from videoReduce operationalReduce operational
complexitycomplexity
Simplify networkSimplify network
architecturearchitectureIncrease trafficIncrease traffic
efficiencyefficiency
Making profit beyondMaking profit beyond
basic subscriptionsbasic subscriptions
Increase serviceIncrease service
velocityvelocity
Service quality andService quality and
securitysecurity
Maximize return fromMaximize return from
infrastructureinfrastructure
2009 Cisco Systems, Inc. All rights reserved.
= Monetization= Optimization
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
9/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 9NDA Presentation
Business Opportunity
Investment in Intelligence
IP RANAggregation/
BackhaulIP Core
Edge / EvolvedPacket Core
Radio /
Microwave
Voice &MessagingRNC
Data Center/Cloud
10-20%80-90%
Traditional Services Mobile Internet
Current CapEx Spend
Mobile Internet Investment will Drive Future Profitability
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
10/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 10NDA Presentation
Business Challenge:
Operators Advantages in the Mobile Internet Battle
Mobile Operator has Unique Differentiation
versus Over the Top Players
Service Usage
Time
RoamingLocation,Presence
DeviceApplication
P2P
Filtering,
Caching, &Ad Insertion
PolicyControl
Cloud Services
Roaming/Handover
Bandwidth,QoS, Security
Service/Application Delivery
P2P
MultimediaMobile Network
Customer Intelligence Network Intelligence
SessionInfo
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
11/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 11NDA Presentation
B2CBusiness to Consumer
$$
ServiceProviders
NextGen Business Architecture:
Mobile Internet B2B2C
B2B2C
ApplicationProviders
ApplicationProviders
ContentOwners
ContentOwners
AdvertisersAdvertisers
ContentAggregators &Broadcasters
ContentAggregators &Broadcasters
E-tailersE-tailers
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 11NDA Presentation
SPs Must Expand from Todays One-Sided toa Two-Sided Business Model
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
12/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 12NDA Presentation
All roads lead to LTE to address thechallenges, however.
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialCisco VNI Mobile Data Forecast_2010 12
CDMA2000CDMA2000
1X1XcdmaOnecdmaOne
CDMA2000 1xCDMA2000 1x
EVEV--DODO
eHRPDeHRPD
LTELTEEPCEPC
GSMGSM
EDGEEDGE
HSPAHSPAWCDMAWCDMA
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
13/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 13NDA PresentationEvolved Packet Core is the Engine that Drives Profitability
Evolved Packet Core:
Next Generation Core Drives Profitability
WiFi,Femto
2.5G,3G
4G
Evolved PacketEvolved PacketCoreCore
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
14/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 14NDA Presentation
Service Provider Challenge:
Future Profitability
Profitability =Profitability = CapEx + OpExCapEx + OpExRevenueManage the bandwidthManage the bandwidth
explosion from videoexplosion from videoReduce operationalReduce operational
complexitycomplexity
Simplify networkSimplify network
architecturearchitectureIncrease trafficIncrease traffic
efficiencyefficiency
Making profit beyondbasic subscriptions
Increase service
velocity
Service quality andsecurity
Maximize return fromMaximize return from
infrastructureinfrastructure
2009 Cisco Systems, Inc. All rights reserved.
= Monetization= Optimization
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
15/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 15NDA Presentation
Improved Total Cost of Ownership
Radio Costs
EV-DO HSPA+ LTE
Data Usage Per User Per Month
TotalCostofOwnership
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
16/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 16NDA Presentation
Intelligent Optimization
2G/3G,4G/LTE,
WiFi, Femto
Function Integration Traffic optimization
Protocol
Data / Video
QoS/QOE
Policy
Internet offload
IP Core
IP RAN
Edge
EPC
DCDC
DCDC
CorporateCorporateInternetInternet
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
17/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 17NDA Presentation
Service Provider Challenge:
Future Profitability
Profitability =Profitability = CapEx + OpExRevenueRevenueManage the bandwidth
explosion from videoReduce operationalcomplexity
Simplify networkarchitecture
Increase trafficefficiency
Making profit beyondMaking profit beyond
basic subscriptionsbasic subscriptions
Increase serviceIncrease service
velocityvelocity
Service quality andService quality and
securitysecurity
Maximize return frominfrastructure
2009 Cisco Systems, Inc. All rights reserved.
= Monetization= Optimization
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
18/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 18NDA Presentation
Profits thru Monetization
Mobile Internet B2B2C
MultimediaNetwork
SP Core Services
11 Protect, Controland Grow
SP Content /
Services Base
RevenueShare with New
Third-PartyServices
22
DeliverSP and Third-Party
Services to AnyDevice / Screen
33
SP
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
19/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 19NDA Presentation
Policy, In-line Services, Intelligent Management
The Baseline to Monetization
Automated usage notifications
Parental controls
Roaming management
Traffic optimization
Time based charging
Fair usage
New Revenue CreationResource ManagementPersonalization Services Tiered services
Turbo service
Location or On Net charging
Freemium
Gx
Ga /Gy
Cisco ASR 5000SGSN / MME / SGW
AAA
SPR PCRF
OCSOFCS
MAP/Diameter
Cisco ASR 5000GGSN / PCEF / PGWIn-Line Services
Radius/Diameter
IMS
CiscoASR 5000CSCF
Rx
MobilityUnifiedReporting
2G/3G, LTE,WiFi, Femto
Internet
Corporate
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
20/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 20NDA Presentation
Mobile MonetizationHarnessing Subscriber and Network Intelligence
Protect
and GrowSP Content/Services Base
RevenueShare with NewThird-PartyServices
Deliver SP andThird-PartyServices to
Any Device/Screen
Use Case: Tiered Services
Service plans personalized to usage patterns Bronze/Silver/Gold, with usage cap and QoS throughput Results: Revenue increase of $22.9M/month, subscribers
up from 1.5M to 2.2M, ARPU increase of $6.85/month
Use Case: Mobile TV Revenue share with content providers for all you can eat
Sports or News Zero rate the application Results: Increase in ARPU and stickiness from Mobile TV
Use Case: Social Networking with Content APAC Providerspace for sharing views, photos,
videos; create personal chat rooms; unlimiited video streaming
Results: Price per upload = $1, price per download$.25; creating chat rooms is free = revenue increase
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
21/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 21NDA Presentation
Cisco Mobile Internet Momentum
200+ Operators in 75+ Countries
7/31/2019 Jonathan Morgan- Starent Networks- Service Differentiation
22/22
2010 Cisco Systems, Inc. All rights reserved. Cisco ConfidentialMobility BDM_0110 22NDA Presentation
More on Cisco SP Mobility @http://www.cisco.com/go/mobile